Most people are taking advantage of the dropping oil prices and are enjoying filling up at the gas stations now. But for some, especially those who work in the oil and gas industry, it has a very negative impact most seen by our neighbours in Alberta. How will the lowering oil prices affect house prices? Will they affect prices across the country?

Calgary is Alberta’s largest city and has had house prices jump 6% over the last year. The result of the lowering oil prices will likely slow the rapid house price increase and is expected to rise by 3% in 2015 making the average house price in Calgary $497,500. The expected decrease will come from buyers becoming wary of the market and waiting things out to see if the average house price will decrease even further.

Although most agree that unless the low oil prices persist for a longer period of time, Calgary won’t see a decline in average house prices but rather a slowing down from the rapid increases they’ve seen in the past. The rapid increase in average house price that they’ve seen as of late and now this decrease in oil will cause Calgary to move into a more balanced market.

Across Canada, the effects won’t be seen unless jobs are cut and the overall economy which isn’t anticipated for 2015. The rest of Canada however, is supposed to see smaller house prices in 2015 but it won’t be due to the lower oil prices.

Higher inventory levels in many cities, and as some places switch to more affordable condominiums, are forecast to be the major contributing factor in centres seeing a average house price increase. 2014 saw a 6.2% increase nationally in price and 2015 is anticipated to bring a 2.5% increase.

Saskatoon is forecast to see a static market, not a increase or a decline in average house price, for 2015. Prices are expected to remain at $333,900 for the year. Winnipeg is also forecast to remain the static while Regina and Edmonton are expected to see a similar price increase of around 4% making the average house price $346,500 and $389,900 respectively.

Want to know more about what’s going on in the Saskatoon real estate market? Contact me today and I’d be glad to answer any questions you might have.

 

Kari Calder

Saskatoon real estate agent

Century 21 Fusion

Kari@saskatoonrealestate.net

1 Comment
  1. The low oil prices have already started to hurt the Saskatoon market, I started looking for a house in Sept.2014. At the time there were around 1535 listings, now there are 1790 listings. That tells me a lot, people are waiting for the prices to come down. Its not like buying a house is only 100 or 150 thousand dollars, and 400 to 500 thousand is a lot of money to spend. Some sellers are not lowering their price, hoping the big boom will continue. Well wake up its not. When I finally decide to buy a house I will be lower the price by about 100,000. after all I’m not losing any money by waiting my money keeps drawing interest in the bank, but new built homes that are getting taxed at 3500 – 4500 a year plus heating and other costs are end up hurting the seller, as far a rent goes why would i pay 1400 a month to rent when I could get a decent house mortgage for that. Bottom line i think is that until the 8000 to 12000 dollar a month oil patch jobs come back i will be low balling big time for a housing deal.

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